Catch up on CAPA’s exclusive Market Analysis pieces

    Each week, CAPA – Centre for Aviation, produces informative, thought provoking and detailed market analysis of the aviation industry. With supporting data included in every analysis, CAPA provides unrivalled and unparalleled intelligence.


    Delta Air Lines leveraging AI, sees blockchain opportunities

    Artificial Intelligence (AI), blockchain and machine learning are catch phrases constantly bandied about by all industries, including the travel industry. Airlines talk about those technologies to varying degrees, and the ability to harness data to improve operations, the passenger experience, and ultimately, profitability.

    Delta Air Lines has recently outlined some ways it is using machine learning and other technologies, ranging from predictive maintenance to determining which prospective employees would be the right fit for the organisation.

    Delta and many airlines are in the early stages of crafting a strategy to embrace AI, machine learning and leveraging data. But there’s no doubt airlines of all sizes and and business models understand all of those existing and emerging technologies will become mainstays of the marketplace.

    To read on, visit Delta Air Lines leveraging AI, sees blockchain opportunities


    ACI airport report: – economic impacts of non-aeronautical activities

    Statistics released by Airports Council International (ACI World), culled from data from airports in all parts of the world in 2016, offer an intriguing insight into the relative values of different segments of non-aeronautical revenue generation.

    The key performance indicators (KPIs) are based on an annual survey in 2016 that generated responses from 919 airports in the 2016 financial year. Efforts were made to ensure that a broad range of airport types and locations were included, such as those from advanced economies, emerging and developing economies, ASEAN countries, euro area, the BRICS (Brazil, Russia, India and China), the ‘Next 11’ (South Korea, Mexico, Bangladesh, Egypt, Indonesia, Iran, Nigeria, Pakistan, the Philippines, Turkey and Vietnam) and so on. (See glossary)

    Total airport industry revenues in 2016 amounted to USD161.300 billion, of which USD89.3 billion (55.4%) was aeronautical revenue and USD64.3 billion (39.9%) non-aeronautical, that is: globally, just less than 40% of airport revenues in 2016 were generated from non-aeronautical sources. Non-aero revenues were the greatest in the Middle East, where they came within USD200 million of the aeronautical total, and in Asia Pacific.

    The following report is a brief synopsis of the ACI report into this subject with associated comments.

    To read on, visit ACI airport report: – economic impacts of non-aeronautical activities


    Uzbekistan Airways SWOT: opportunities and challenges after reforms

    Uzbekistan has emerged as an aviation market with huge potential, since president Shavkat Mirziyoyev took over two years ago following the death of the long-standing Soviet style dictator Islam Karimov. Uzbekistan has since embarked on a major reform path which has opened up tourism and is leading to a major restructuring of the air transport sector.

    Uzbekistan is now focusing heavily on tourism, which has already experienced a more than doubling of visitor numbers over the past two years, and the country has put in place a new much less restrictive visa policy that should help drive further rapid growth. New policies aimed at encouraging growth in aviation have also been introduced, ushering in a new more liberal operating environment that should attract more foreign airlines and privately owned start-ups.

    For the government-owned flag carrier, Uzbekistan Airways, the reforms create a more challenging environment of intense competition and an end to protectionism.

    The airline is being separated from airports and other areas as Uzbekistan finally abandons the Soviet-style vertical structure in which the airline company controls virtually every facet of air transport, which has enabled cross-subsidisation with profits from monopolies in the airport and airspace sectors covering losses at the airline. The upside for Uzbekistan Airlines is that after a restructuring it should emerge as a leaner, more efficient airline with a strong position in a fast growing market on the cusp of a tourism boom.

    To read on, visit Uzbekistan Airways SWOT: opportunities and challenges after reforms


    Philippines-India aviation: PAL to Delhi, inbound tourism grows

    Philippine Airlines (PAL) is planning to resume services to Delhi in early 2019 using its new fleet of A321neos. The new service should help the Philippines attract more Indian visitors and lead to faster growth in what is now the largest unserved market for the Philippines.

    PAL recently set a 31-Mar-2019 launch date for four weekly A321neo flights from Manila to Delhi. PAL was previously considering launching services to both Mumbai and Delhi, but PAL is now intending to serve only Delhi.

    PAL has not served any destination in India since 2013. The airline launched services to Delhi in Mar-2011, with three weekly nonstop flights and three weekly one-stop flights via Bangkok.

    To read on, visit Philippines-India aviation: PAL to Delhi, inbound tourism grows


    Brazilian airport concessions: Rio and São Paulo to be included

    The Brazilian airport concession programme took another unexpected turn when a further tranche – this time of 44 airports in six regional blocks – was reported to have been drafted on the orders of recently elected President Jair Bolsonaro.

    Many of the most attractive airports, especially so to foreign operators and investors, appear to have gone already, but in this instance both the Santos Dumont Airport in Rio de Janeiro and Congonhas Airport in São Paulo will also be included.

    But events in Belo Horizonte, where a secondary airport may be restored to full functionality, contrary to the understanding of the concessionaire on the primary one, threaten to impact negatively on the current and future tranches.

    To read on, visit Brazilian airport concessions: Rio and São Paulo to be included


    Argentina airlines: high potential, but a tangle of obstacles

    Argentina’s aviation market is a study in contrasts. The more liberalised stance of President Mauricio Macri has resulted in a flood of interest by new operators, and in 2018 Flybondi debuted as the country’s first fully fledged LCC, followed by Norwegian Air Argentina’s market entry as a second low cost operator.

    Those airlines, and other Latin low cost start-ups are also working to enlarge their presence on international routes to and from Argentina, even as currency pressure has depressed international demand in the back half of 2018.

    But opportunities for growth in Argentina are undermined by infrastructure constraints, economic uncertainty and mounting union opposition. As new airlines work to expand in the country during 2019, they will need to craft strategies to face those challenges in order for Argentina to reach its potential.

    To read on, visit Argentina airlines: high potential, but a tangle of obstacles